Management issue Assignment Example | Topics and Well Written Essays - 750 words

Management issue - Assignment Example Many organizations fail on this issue as they do not apply or rather use the appropriate management strategies (Hopkins, 3). With the interconnectedness of factors in the market, risks in companies may crop up from any corner across the globe and cause uncertainty and volatility which in turn increase the pressure on managers. Moreover, the uncertainty increases the management need for specific and accurate data. This goes along with the need to ensure that every decision the management makes take into account several alternatives in related issues. Various factors have come to the forefront forcefully due to the ever changing nature of markets across the globe. These factors have a greater impact on risk management of businesses. To start with, operational risk is on top of this list. With the ever rising complexity in transactions, the world’s nature of every market and the particular risks they represent is common for companies. Thus, comparing to the previous years, a number of firms have an employment position for operational risk officers; such positions never existed in previous years. Secondly, economic models are now on a focus. These have led to various questions that lack easy answers. For instance, given a capital challenges that resulted to a crisis in the organization, should the firm continue using the same proprietary model? Proper models or rather proper use of these models is at stake in many organizations since they have an impact in the firm’s risk management. In addition, the corporate governa nce is an upcoming factor which is being focused by risk managers. These managers are currently involved in companies’ corporate governance and other discussions such as compensation. In most cases, they are asked to give opinions on packages of compensation and if the incentives in these packages might height the company’s profile. Lastly, the role of overall management in the modern companies is dramatically changing. The risk-related